So, you want to buy an expensive sports toy?

OK, you’ve worked hard and done well, but stopping to smell the roses isn’t what you want to do to celebrate — you want to have some fun!

Maybe go messing about in boats, snowmobile the winter away, or follow the Lewis and Clark route on a motorized “personal watercraft.”

Today’s sports toys cost big, big bucks, so before you take the plunge, devise a buying strategy that fits your lifestyle and budget.

“Remember, these are personal items, so they’re going to be costly up front and you’re going to pay a higher interest rate because you’re buying a luxury,” warns Ralph Guthrie, sales manager of Brookside Marina in Naples, Fla.

Let’s consider your options and look at some examples.

Dealer financing: For as little as 10 percent down, you can be in action, but you’ll need good credit and several years of credit history to get a good interest rate. (more…)


Avoid Common Day Trading Mistakes

Fortunes are made and lost through stock trading. A day trader is particularly susceptible to making and/or losing money on a consistent basis. Avoiding the three most common mistakes made by new day traders can minimize the typical high risk to improve the odds of winning.

Day Trading Is, By Definition, Risky

All day trading definitions are similar. A day trader buys and sells securities throughout the trading day and closes all activities by the end of the daily period. The opposite of a buy and hold strategy, this action plan involves taking wins and losses daily.


Look at the many daily highs, lows, and overall volatility of online stock trading. Clearly, the risk/reward quotient is always high on both sides of the equation. Daily online trading can generate large profit and devastating losses.

A day trading strategy requires that the investor minimize risk and avoid common mistakes. The vagaries of the stock market will generate its own results without negative assistance from the trader. (more…)


Has alternative finance proven its worth?

Alternative financing models such as crowdfunding, peer-to-peer financing and invoice trading are no longer at the fringes of the financial sector. Increasingly, these and other newly established financing vehicles are rapidly becoming mainstream options for entrepreneurs looking for more innovative and flexible ways to finance their growth.

According to a 2015 study by University of Cambridge and EY, the growth rates of some alternative financing options have been particularly impressive and look set to accelerate. In Europe alone, transaction volumes via alternative finance platforms grew six-fold in three years and were expected to surpass €7 billion (US$7.9 billion) in 2015, making alternative financing more accessible to early-stage businesses.

Necessity: the mother of invention

The 2008-09 financial crisis accelerated the development of alternative financing. Its immediate effect was to cause many of the developed world’s banks to cut back on their lending, particularly to early-stage businesses. The introduction of new bank capital regulations added further momentum because banks were forced to focus on building up large capital reserves instead of lending. (more…)


Newest Rules of FCA Regarding Forex Brokers

Most of you may already know that FCA announces newest rules regarding forex brokers periodically. As a regulatory body, the Financial Conduct Authority keeps reviewing the forex market and to protect the interest of general public it continuously plans and develop strategies to make forex brokers and other financial institutions well regularized. The FCA has the sole responsibility to work in line with all entities entrusted with the public money and to issue the license to operate within the UK. There broke a news that FCA is going to announce some changes concerning the rules and regulations of forex brokers in 2018, however, for some reason, it got delayed and the newest rules of FCA regarding forex brokers 2018 are yet to be announced.

About Financial Conduct Authority – FCA

The Financial Conduct Authority is a well reputed regulatory authority that oversees forex brokers and similar entities in the UK. Working in collaboration with the PRA (Prudential Regulatory Authority) and BOE (Bank of England) it ensures to maintain a healthy trading environment and safeguard the trader’s interest. The prevention of financial irregularities and malpractices is considered to be the core tenet of the regulatory body. Fraud, promotional campaigns instigating people to get into forex trading, malfeasance and other similar practices gets frowned upon by Financial Conduct Authority – FCA. (more…)


How to get the help you need when investing

As a newbie investor, the world of trading in shares can seem somewhat daunting at first glance. It can, for example, appear to be quite confusing – especially with all the new terminology you need to learn. It can also seem a little too risky as well, and there’s a whole host of platforms to get to grips with. Luckily, though, help is at hand. Whether it’s from a professional advisor or from an online resource, there are lots of ways to educate yourself about the world of trading and move ahead in your trading career.


Professional advisors

In some cases, meeting with a professional financial advisor is a good move. That is often the route chosen by people who are taking their first steps into the world of investment and feel either confused or worried about what to do, or alternatively by people who have large sums of cash and don’t know what the most prudent course of action to protect it might be.

It’s important, however, to choose an advisor who is knowledgeable about the industry and who is regulated by the Financial Conduct Authority. Some advisors may offer lower fees or the promise of extremely high returns in order to attract your business, but such advisors are not always the most scrupulous and you may be exposing yourself to the risk of fraud or other problems.

Find a mentor

For some people, investing is more than a way to augment earnings, it’s a way of life. It could even be a part time or full time job. That is often the case for people who have left work and are looking for something they can do from home. If that is your plan, finding someone who has done this before to mentor you is a good idea as they can give you advice on how to make your new endeavour profitable while avoiding high levels of risk. (more…)


Best Way to Learn Stock Trading Basics

The Internet offers many tools to help people gain the knowledge they need to become successful investors. Some are excellent, while others may be a bit confusing. Two learning tools typically prove to be wonderful sources of information for the newer investor.

Two Useful Stock Trading Basics Tools

  1. Online investing courses for beginners. An online stock trading course that addresses (and defines) primary investing terms, “how-it-works” data, and includes a discussion of the basic theories used by experienced traders provides invaluable help to new investors.
  2. Superior stock trading simulation games. The best stock market games offer real-world excitement and total reality, permitting the player to gain strong experience without risking real money. Using “virtual” money, players learn how stocks react to current economic conditions and pressures.


Stock Trading Courses

There are many options for choosing stock trading courses. Continuing education courses at colleges and universities- and many community colleges- offer stock investing basic programs. However, the Internet also offers some interesting and valuable courses outlining the basics of investing. For anyone interested in building a knowledge base regarding successful stock trades, a course like Investing 101 at Wall Street Survivor, can offer the information one needs to create a profitable stock portfolio. (more…)


When Expenses are Capitalized as Assets

Booking something as an asset or an expense is not always black or white. There are many gray areas in accounting. It’s easy to know that a car or a building is an asset, but what about routine repairs to that car or building? When is it an expense, and when should those repairs be added to the cost of that asset (capitalized)?

As discussed with prepaid assets and unearned revenue, such routine repairs would always be considered an expense if it would only affect the current period of time. For instance an oil change would always be an expense, since it affects the car right then to help it run better. It could conceivably increase the useful life of the automobile but not increase its worth.

Improvements are Assets not Expenses

On the other hand if the engine died and had to be replaced, this would probably increase the car’s life as well as its worth. So the engine expense would be capitalized. The best self check is to ask yourself if the expense only affects the current period of time or if it will be an ongoing use for a year or more. Is the cost an improvement or merely a repair or maintenance charge?

Since an oil change has to be done every few months, it is obviously a current period expense. But a new or rebuilt engine would logically be expected to last for several years. So that expense would be added to the cost of the car. (more…)


When Expense becomes Asset and Revenue becomes Liability

The basic accounting equation explains how assets equal liabilities plus equity. The accounts that make up these assets, liabilities and equity are detailed on the company’s Balance Sheet. Income (or loss) is a part of the Equity section, and this information is detailed on the Income Statement. Revenues and expenses from a specific period of time are on the Income statement.

So what are expenses and revenues? Expenses are costs of doing business during a set period of time, usually a month. These can vary from rent to payroll. Revenues are earned during the same period of time. Depending on if the company is cash or accrual based, these revenues can be real or accrued, meaning that either cash or a receivable respectively is associated with them.


Income Statements Show Profits and Loss

In order for these expenses and revenues to impact only the reporting period, sometimes they must be posted as assets or liabilities. Let’s say that Business A pays their rent every month and receives cash receipts immediately upon service rendered. This company can post their rent and cash received as current expenses and revenues. (more…)